Franchises, Business Opportunities, and Investments

For companies selling franchises and business opportunities – and entrepreneurs in the market – the FTC's Franchise Rule and Business Opportunity Rule mandate disclosures and offer buyers certain protections. In addition, the FTC has resources to help people spot business opportunity and investment scams and avoid franchise taboos.

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If you sell business opportunities, including work-at-home bizopps, find out how the FTC’s revised Business Opportunity Rule may apply to you. Avoid a compliance miscue by making required disclosures and steering clear of prohibited practices.

Promoters of fraudulent business opportunities run ads where their targets are likely to see them: in daily and weekly newspapers, in magazines, and on the Internet. Advertising sales staff with a well-trained eye can recognize – and reject – ads promoting bogus promotions.

Ads for business opportunities doing medical billing may sound like the perfect work-at-home option, but beware. The reality is that few people who pay for medical billing opportunities make any money.

Thinking about starting your own business or expanding the one you own? When you shop for a loan or line of credit, the law protects you against discrimination. The Equal Credit Opportunity Act prohibits creditors from denying you a loan based on reasons that have nothing to do with your credit-worthiness.

There are multi-level marketing plans – and then there are pyramid schemes. Before signing on the dotted line, study the company’s track record, ask lots of questions, and seek out independent opinions about the business.

If you sell business opportunities, including work-at-home bizopps, find out how the FTC’s revised Business Opportunity Rule may apply to you. Avoid a compliance miscue by making required disclosures and steering clear of prohibited practices.